Asia stocks mixed after China data, Iraq violence

Asian equities turned mixed on Friday amid concerns about violence in Iraq and signs of improving economic activity from China.

U.S. president Barack Obama warned of possible military strikes in Iraq as a rebellion led by a Sunni Islamist group called the Islamic State of Iraq spreads rapidly through the country. Late on Thursday, Kurdish forces in the north took control of Kirkuk, home to the Kirkuk-Ceyhan oil pipeline, to protect it from the Islamists. The Iraqi government has since launched air strikes on insurgents in Mosul, which the militants took control of earlier this week.

Investors digested a raft of May economic data from China. Retail sales rose 12.5 percent on year, beating expectations for a 12.1 percent increase, while industrial output increased 8.8 percent on year, in line with estimates. Fixed asset investment rose 17.2 percent on year for the January-to-May period, just above expectations for a 17.1 percent rise.

Japan's benchmark Nikkei index bounced off a two-week low hit earlier in the session after Prime Minister Abe said that the government will aim to cut the corporate tax rate below 30 percent over the next few years, starting from the next fiscal year.

South Korean shares saw their worst session in seven weeks on heavy foreign selling. Investors also digested data out early in the day, which showed exports slipped an annual 1 percent in May, compared to initial readings for a 0.9 percent drop.